It is not a matter of surprise for most of the people living
that their income is short of unavoidable expenditure. This is why you begin to
borrow, and you borrow from several sources to meet the waves of demand.
Parallel to this, you should bear in mind that you must take steps to reduce
your debt. You will not be able to secure fresh finance if you are not serious
of maintaining good credit score.
You must have complete knowledge of your extent of debt. You should not go for
a life caring little about your debt. One of your basic tasks is to manage your
finance. This includes measures you take to , none save you are bound to clear your own debt. It is another
thing that you will try to increase your income by working extra hours or by
taking part time jobs. You must also reduce unnecessary expenditure.
You must not ignore what amount you must have to reimburse in every month. It
is possible that sometimes you are in an undesirable financial crisis, a crisis
when you are really not in a state to pay off the loan amount as per the agreed
conditions. It is always good, at this time, to meet the lender and describe
him your problem honestly and sincerely. You can be helped by the lender.
Nevertheless, it is always good to go on paying a limited amount towards the
loans instead of creating an arrear. This action assures the lenders that are
willing to clear the loan amount. Your credit report maintains its health
You can opt for debt consolidation measures if you find yourself trapped by
multiple debts. This is a good option to reduce your debt. In this case,
different loans are consolidated into a single loan and you are to pay for a
single loan henceforth. The rate of installments and period of reimbursement
are re-fixed taking your financial capacity into consideration. Now, you are
sure not to default again.
Another way to reduce your loans is to seek advice from professional debt
counselors. They will hear from you in details. You should describe them how
much you owe to the lenders in all and how much you do earn in a month. They
will advice you what best can be done in your condition.
Aaren Dervin is financial advisor of IVA Debt Advice Solutions.For more
information about , visit